Fortum Q2 profit halves on lower hydro inflows, nuclear outages

Published 15/08/2025, 07:32

Investing.com -- Fortum ’s (HE:FORTUM) comparable operating profit in the second quarter of 2025 fell 51% to €115 million from €233 million a year earlier, as lower hydro inflows and extended nuclear outages reduced power generation, the Finnish company reported on Friday.

Sales declined 22% to €974 million from €1.26 billion, while operating profit dropped to €104 million from €240 million. 

Net profit after non-controlling interests was €104 million, compared with €217 million a year earlier. Earnings per share decreased to €0.12 from €0.24.

For January–June, comparable operating profit was €577 million, down from €763 million in the same period of 2024. 

Operating profit fell to €574 million from €812 million. Net profit after non-controlling interests was €468 million, compared with €688 million. 

Earnings per share dropped to €0.52 from €0.77. Operating cash flow decreased to €656 million from €876 million.

The Generation segment recorded the steepest decline. Hydro volumes in April–June fell 31% and nuclear output was down 11%. 

Fortum’s achieved power price was stable at €48.1 per MWh, nearly unchanged from €48.6 per MWh. 

Consumer Solutions posted its strongest second-quarter comparable operating profit at €26 million, up from €12 million, supported by improved gas and electricity margins.

Financial net debt at the end of June was €1.27 billion, compared with €367 million at the end of 2024, reflecting dividend payments of €1.26 billion in April. 

The financial net debt-to-comparable EBITDA ratio stood at 0.9 times for the last 12 months. 

Fortum completed the €28 million acquisition of Polish electricity provider Orange Energia, adding about 130,000 customer contracts and doubling its retail customer base in Poland. 

After the quarter, the company acquired a 4.4 GW wind power project development portfolio in Finland from ABO Energy, increasing its Nordic wind and solar pipeline in permitting to about 8 GW.

The energy company expects total generation volumes for 2025 to remain clearly below normal, with nuclear production forecast to decline by 2.9 terawatt hours for the year and hydro generation set to fall below the long-term average of 20–20.5 TWh. 

Fortum has hedged about 80% of its Nordic generation for the rest of 2025 at €41 per MWh and 60% for 2026 at €40 per MWh.

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